Bauxite/Alumina giant UC Rusal back to profitable ways

UC Rusal which controls most of  the mining companies in Jamaica's bauxite/alumina sector today reported that it returned to profit for the first time in five quarters. It also gave a bullish outlook for aluminium prices, driven by growing demand from car makers and supply cuts outside China.  

 

The aluminium giant emerged from the red thanks to higher aluminium prices, cost cuts, smelter closures and forecast further gains, as it sees a global supply deficit more than doubling in the second half  of  the year to 1.5 million tonnes. Rusal last week completed a crucial restructuring of  US$5.1 billion in debt and has no payments due until January 2016. The deal gives it flexibility to pre-pay debt when cash flows are strong and pay less when London Metal Exchange prices fall.